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Vizsla secures $10M in Mexico-backed loan for Panuco project

Vizsla Silver secured a Mexican government‑backed 173 million peso (about $10m) five‑year working capital facility for its Panuco silver‑gold project, boosting investor confidence and lifting Vizsla shares ~2.6% (market cap C$1.78bn). The loan carries interest at the TIIE funding rate plus a 4.6681% margin and is intended to advance mine development and district‑scale exploration. The financing reinforces the company’s development plan for what it calls the world’s largest undeveloped high‑grade primary silver resource (>102m oz silver, ~829k oz gold). A recent feasibility study projects annual production of 17.4m oz silver equivalent over a 9.4‑year life, an after‑tax NPV (5%) of $1.8bn and an IRR of 111%, underpinning the positive market reaction. The deal reduces near‑term financing risk for Panuco and is a validating endorsement from a state‑backed lender, likely supporting further investor appetite for Vizsla and for silver exposure more broadly.

Category

Gold

Sentiment

Bullish

Event

Funding round

Reading time

1 min